German broadcaster says it happened in Zirndorf near Nuremberg
A "detonation incident" has been confirmed by police near a reception centre for migrants in Zirndorf, Germany.
Police said in a statement that an aerosol can inside a suitcase may have exploded but then added: "no explosion, no injuries" on their official Twitter account.
Officers were on the scene just after the incident, which occurred around 1.15pm UK time.
The BR24 news website reported witnesses as saying several men ran away from the scene after the blast.
Police are now searching for the owners of the suitcase and issued descriptions of a man aged around 30 and a woman of about 25 who were believed to have been seen with it.
Pictures of the scene outside the migrant centre in Bavaria appeared to show debris in an alleyway.
The incident came just days after a Syrian with suspected links to Islamic State blew himself up near a bar in Ansbach, also in Bavaria.
Germany had already seen nine people killed in a shopping centre shooting spree in Munich on Friday and four passengers on a train and a passer-by wounded in an axe attack in Wuerzburg on July 18th.